Minutes June 12, 2001CITY OF DENTON CITY COUNCIL MINUTES
June 12, 2001
The City Council of the City of Denton, Texas observed a demonstration of decibel levels on
Tuesday, June 12, 2001 at 5:00 p.m. in the parking lot behind Muther's at 113 Avenue A,
Denton, Texas.
PRESENT: Mayor Brock; Mayor pro Tem Beasley; Council Members Burroughs, Fulton,
McNeill, Phillips, and Redmon.
ABSENT: None
Following completion of the demonstration and after determining that a quorum was present, the
City Council convened in a Work Session on Tuesday, June 12, 2001 at 6:00 p.m. in the Council
Work Session Room.
1. The Council received a report, held a discussion, and gave staff direction regarding
proposed revisions to Section 20-1 of the Code of Ordinances regulating noise.
Scott Fletcher, Field Operation-East-Denton Police Department, stated that on April 24, 2001
staff presented a background packet on proposed revisions to the current noise ordinance. After
Council discussion, staff was requested to do further research in several areas including outdoor
music festivals, outdoor performances, decibel levels and industrial performance standards.
Regarding the outdoor music festival, staff had suggested a 70 dba at the established perimeter of
the event be established while Council had asked staff to consider a 75 dba level. The concern
with outdoor performances dealt with the amount of noise produced by bands or other music
sources in an outdoor setting. It was determined that the amount of noise would have to be much
less to stay within the requirements of the ordinance. Staff suggested using the provisions set out
for amplified sound in the ordinance revisions to cover all venues and properties employing
amplified sound or any other source delineated in the specific section of the ordinance. The
industrial performance standards were incorporated into the Development Plan. Staff was
recommending that Council adopt the ordinance as written.
Mayor Pro Tem Beasley felt that the ordinance should remain at 70 dba and not be increased to
75 dba. This was a good starting point and further evaluations could take place on how effective
was the ordinance.
Council discussed the pros and cons of using the decibel for the standard of noise regulation.
Consensus of the Council was to move forward with the ordinance, keep the 70 dba instead of
increasing it to 75 dba and to look into more sensitive meters to make sure all bands of noise
were covered. A review of the ordinance would be scheduled to determine its effectiveness.
Tom Kay spoke regarding the issue.
2. The Council received a report, held a discussion and gave staff direction concerning the
development of a drainage fee.
Jim Coulter, Director of Water/Wastewater, stated that in FY 1999, the drainage program was
transferred to the Wastewater Department. He indicated that water and wastewater rates were
not designed to carry the funding for the drainage program and recent drought conditions had
enabled Water and Wastewater to provide drainage funding. In addition to the transfer of the
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June 12, 2001
Page 2
drainage program, the responsibility for bridges and creek crossings was also transferred.
Current funding levels for drainage were not adequate to cover the costs of bridge and crossing
maintenance. One method cities were using to help with the advancing costs for drainage, bridge
and crossing maintenance was the development of drainage fees. Other cities that had developed
drainage fees indicated that some form of impervious coverage basis was used for the calculation
of the fees. This appeared to be the most equitable means of assessing a drainage fee. The
Drainage Division was recommending a schedule of public meetings to discuss drainage issues
including future funding issues. Staff was recommending the continued development of a
drainage fee based on impervious surface area calculations. This approach was most equitable
because it placed a proportionate cost of the drainage impacts on the customers that placed the
greatest load on the system.
Consensus of the Council was to look at a governmental rate for school and other government
entities in the city, to look at a means to calculate the rate for smaller sized homes and to
continue the development of a drainage fee based on impervious surface area calculations.
3. The Council received a report and held a discussion on conversion of the overhead
electric lines to underground along University Boulevard.
Chuck Sears, Engineering Administrator, presented an overview of the project and some of the
challenges associated with the project. Phase I, Loop 288 to Locust Street, was scheduled to be
completed in November 2001. Phase II, Locust Street to 1-35, was scheduled to be completed in
2003. Money was included in the 2002 budget for continuing the construction from Locust to 1-
35. There were no plans available for Phase II at this point in time. The final design would be
coordinated with the TxDOT plans and costs could change. When Phase I was completed, there
would be no power lines visible adjacent to either side of University. There would be four street
crossings remaining - a transmission line and distribution at Old North, a crossing at Ruddell, a
crossing at Bell and a crossing just west of Loop 288. He reviewed the costs associated with the
project. Other challenges associated with the project included obstructions such as buildings,
walls, gas lines and meters, curves in the road and bridges and open drainage plus higher costs
associated with necessary remote improvements.
4. New Business
The following items of New Business were suggested by Council Members for future agendas:
A. Council Member Fulton requested an update on the LINK routes, particularly in
northeast Denton.
B. Council Member Redmon asked for a discussion regarding a standing item on the
agenda for board and commission appointments.
C. Council Member Phillips asked for a discussion on automated garbage pick-up,
including the status on the results of the test program if there was one.
Immediately following completion of the Work Session, and after determining that a quorum of
the Council was present, the Denton City Council convened a Special Called Closed Meeting on
June 12, 2001, and continuing thereafter until completed, in the City of Denton Work Session
Room.
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June 12, 2001
Page 3
189
1. The Council considered the following in Closed Meeting:
Deliberations Regarding Certain Public Power Utilities Competitive Matters ---
Under TEX. GOV'T. CODE Section 551.086.**Consultation with Attorney
Under TEX. GOV'T. CODE Section 551.071.
(1)
Received competitive electric market information and directed questions
to potential purchasers, discussed and deliberated the same. Received a
confidential competitive electric utility presentation and received
competitive electric market information from Staff and City's consultants;
discussed, deliberated, considered, provided Staff with direction, vote, and
took final action as necessary, regarding future wholesale power purchase
transactions and strategies including, but not limited to the replacement of
electric generation resources; and the proposed sale, transfer, assignment,
or other divestiture of a part of the City of Denton's electric utility system,
including, without limitation: the Spencer generation facility located on
Spencer Road in the City of Denton, Denton County, Texas; and the two
hydroelectric facilities owned by the City located in Denton County,
Texas. Conducted a consultation with the City's attorneys and its outside
legal counsel in order to obtain the advice and recommendations of the
City's attorneys concerning the above-referenced issues, where to discuss
such issues and matters in a public meeting would conflict with the
attorney's duties and professional responsibilities to their client under the
Texas Disciplinary Rules of Professional Conduct, or any other applicable
Disciplinary Rules of Professional Conduct.
Immediately following the Special Called Closed Meeting of the City Council, and after
determining that a quorum of the Council was present, the City Council considered the following
specific items set forth below, in a Special Called Open Meeting of the City Council at the City
of Denton Work Session Room.
1. The Council considered adoption of an ordinance of the City of Denton, Texas providing
for, authorizing, and approving the execution by the City Manager of an Asset Purchase
Agreement by and among the City of Denton, Spencer Station Generating Company, L.P., a
Delaware limited partnership, and PG&E Generating Company, LLC, a Delaware limited
liability company; authorizing and approving the execution by the City Manager of a Transition
Power Agreement by and between the City of Denton and PG&E Energy Trading - Power, L.P.,
a Delaware limited partnership; approving and authorizing the execution by the City Manager of
a Transition Power Agreement Guarantee by and between the City of Denton and PG&E Trading
Holdings, LLC, a Delaware limited liability company; authorizing and approving the execution
by the City Manager of a Bill of Sale by and between the City of Denton and Spencer Station
Generating Company, L.P.; authorizing and approving the execution by the City Manager of an
Assignment and Assumption Agreement by and between the City of Denton and Spencer Station
Generating Company, L.P.; authorizing and approving the execution by the City Manager of a
Continuing Site/Interconnection Agreement by and between the City of Denton and Spencer
Station Generating Company, L.P.; authorizing and approving the execution by the City
Manager of an Easement, License and Attachment Agreement by and between the City of
Denton and Spencer Station Generating Company, L.P.; authorizing and approving the execution
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June 12, 2001
Page 4
by the City Manager of a Guarantee by and between the City of Denton and Spencer Station
Generating Company, L.P.; authorizing and approving the execution by the City Manager of a
Water Rights Agreement by and between the City of Denton and Spencer Station Generating
Company, L.P.; authorizing and approving the execution by the City Manager of a Reclaimed
Water Service and Wastewater Return Agreement by and between the City of Denton and
Spencer Station Generating Company, L.P.; authorizing and approving the execution by the City
Manager of a Power Transfer Agreement by and between the City of Denton and PG&E Energy
Trading - Power, L.P.; authorizing and approving the execution by the City Manager of a Special
Warranty Deed by and between the City of Denton and Spencer Station Generating Company,
L.P.; authorizing and approving the execution by the City Manager of Blanket Conveyances by
and between the City of Denton and Spencer Station Generating Company, L.P.; authorizing and
approving the execution of such other agreements and other documents, including, without
limitation, certificates, contracts, assignments, licenses, leases, directions, instruments, and
statements by the city manager, which are incident or related thereto, as shall be reasonably
determined by the city attorney or his designee; confirming and ratifying that the City of Denton,
its mayor, its city council, its city manager, and its city attorney shall be authorized and
empowered to perform such acts and obligations as are reasonably required to consummate this
transaction; ratifying all prior actions taken by the city council in furtherance of the foregoing
transactions; making such findings as are required by the Public Utility Holding Company Act of
1935, as amended, and the Federal Energy Regulatory Commission implementing regulations;
finding and determining that several of said agreements pertain to a competitive electric matter
as set forth under the provisions of Section 551.086 and Section 552.131 of the Texas
Government Code, as amended; finding and determining that Texas Government Code Section
252.022(a)(15) and Section 272.0010) apply; adopting significant findings, conclusions, and
recitations as are set forth in the preamble of this ordinance; finding that the sale of these electric
generation resources owned by the city in connection with its electric utility under the asset
purchase agreement are not essential to continued effective utility service when considering the
purchase of capacity and energy, and other arrangements made by the city under the terms of the
transition power agreement and other agreements; authorizing the expenditure of funds therefor;
and providing an effective date.
Sharon Mays, Director of Electric Utilities, stated that staff was recommending that the City sell
the Spencer Generating Plant, the Ray Roberts and Lewisville Hydroelectric Plants to the
Spencer Generating Company and sign a power purchase contract for 5 years with PG&E Energy
Trading Company. That contract would supply all of DME's wholesale capacity and energy
requirements above the output from the Gibbons Creek Plant. The 5 year period would be used
to watch the new deregulated market to determine an appropriate strategy for DME to provide
future service to the citizens.
Greg Kelly, PG&E National Energy Group, stated that this company was a different group from
the Pacific Gas and Electric Company, the California utility. They had no ties with Pacific Gas
and Electric on a business basis.
Mark Carney, PG&E, spoke on environmental accomplishments of the company.
The following ordinance was considered:
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June 12, 2001
Page 5
191
NO. 2001-216
AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR,
AUTHORIZING, AND APPROVING THE EXECUTION BY THE CITY MANAGER OF AN
ASSET PURCHASE AGREEMENT BY AND AMONG THE CITY OF DENTON, SPENCER
STATION GENERATING COMPANY, L.P., A DELAWARE LIMITED PARTNERSHIP,
AND PG&E GENERATING COMPANY, LLC, A DELAWARE LIMITED LIABILITY
COMPANY; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY
MANAGER OF A TRANSITION POWER AGREEMENT BY AND BETWEEN THE CITY
OF DENTON AND PG&E ENERGY TRADING - POWER, L.P., A DELAWARE LIMITED
PARTNERSHIP; APPROVING AND AUTHORIZING THE EXECUTION BY THE CITY
MANAGER OF A TRANSITION POWER AGREEMENT GUARANTEE BY AND
BETWEEN THE CITY OF DENTON AND PG&E TRADING HOLDINGS, LLC, A
DELAWARE LIMITED LIABILITY COMPANY; AUTHORIZING AND APPROVING THE
EXECUTION BY THE CITY MANAGER OF A BILL OF SALE BY AND BETWEEN THE
CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P.;
AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF AN
ASSIGNMENT AND ASSUMPTION AGREEMENT BY AND BETWEEN THE CITY OF
DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING
AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A CONTINUING
SITE/INTERCONNECTION AGREEMENT BY AND BETWEEN THE CITY OF DENTON
AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING AND
APPROVING THE EXECUTION BY THE CITY MANAGER OF AN EASEMENT,
LICENSE AND ATTACHMENT AGREEMENT BY AND BETWEEN THE CITY OF
DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING
AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A GUARANTEE BY
AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING
COMPANY, L.P.; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY
MANAGER OF A WATER RIGHTS AGREEMENT BY AND BETWEEN THE CITY OF
DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING
AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A RECLAIMED
WATER SERVICE AND WASTEWATER RETURN AGREEMENT BY AND BETWEEN
THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P.;
AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A
POWER TRANSFER AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND
PG&E ENERGY TRADING - POWER, L.P.; AUTHORIZING AND APPROVING THE
EXECUTION BY THE CITY MANAGER OF A SPECIAL WARRANTY DEED BY AND
BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING
COMPANY, L.P.; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY
MANAGER OF BLANKET CONVEYANCES BY AND BETWEEN THE CITY OF DENTON
AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING AND
APPROVING THE EXECUTION OF SUCH OTHER AGREEMENTS AND OTHER
DOCUMENTS, INCLUDING, WITHOUT LIMITATION, CERTIFICATES, CONTRACTS,
ASSIGNMENTS, LICENSES, LEASES, DIRECTIONS, INSTRUMENTS, AND
STATEMENTS BY THE CITY MANAGER, WHICH ARE INCIDENT OR RELATED
THERETO, AS SHALL BE REASONABLY DETERMINED BY THE CITY ATTORNEY OR
HIS DESIGNEE; CONFIRMING AND RATIFYING THAT THE CITY OF DENTON, ITS
MAYOR, ITS CITY COUNCIL, ITS CITY MANAGER, AND ITS CITY ATTORNEY SHALL
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June 12, 2001
Page 6
BE AUTHORIZED AND EMPOWERED TO PERFORM SUCH ACTS AND OBLIGATIONS
AS ARE REASONABLY REQUIRED TO CONSUMMATE THIS TRANSACTION;
RATIFYING ALL PRIOR ACTIONS TAKEN BY THE CITY COUNCIL IN FURTHERANCE
OF THE FOREGOING TRANSACTIONS; MAKING SUCH FINDINGS AS ARE REQUIRED
BY THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935, AS AMENDED, AND
THE FEDERAL ENERGY REGULATORY COMMISSION IMPLEMENTING
REGULATIONS; FINDING AND DETERMINING THAT SEVERAL OF SAID
AGREEMENTS PERTAIN TO A COMPETITIVE ELECTRIC MATTER AS SET FORTH
UNDER THE PROVISIONS OF SECTION 551.086 AND SECTION 552.131 OF THE TEXAS
GOVERNMENT CODE, AS AMENDED; FINDING AND DETERMINING THAT TEXAS
GOVERNMENT CODE SECTION 252.022(A)(15) AND SECTION 272.001(J) APPLY;
ADOPTING SIGNIFICANT FINDINGS, CONCLUSIONS, AND RECITATIONS AS ARE
SET FORTH IN THE PREAMBLE OF THIS ORDINANCE; FINDING THAT THE SALE OF
THESE ELECTRIC GENERATION RESOURCES OWNED BY THE CITY IN
CONNECTION WITH ITS ELECTRIC UTILITY UNDER THE ASSET PURCHASE
AGREEMENT ARE NOT ESSENTIAL TO CONTINUED EFFECTIVE UTILITY SERVICE
WHEN CONSIDERING THE PURCHASE OF CAPACITY AND ENERGY, AND OTHER
ARRANGEMENTS MADE BY THE CITY UNDER THE TERMS OF THE TRANSITION
POWER AGREEMENT AND OTHER AGREEMENTS; AUTHORIZING THE
EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE.
Burroughs motioned, Beasley seconded to adopt the ordinance. On roll vote, Beasley "aye",
Burroughs "aye", Fulton "aye", McNeill "aye", Phillips "aye", Redmon "nay", and Mayor Brock
"aye". Motion carded with a 6-1 vote.
2. The Council considered adoption of an ordinance approving a letter real estate agreement
between the City of Denton and Union Pacific Railroad Company relating to the purchase of
approximately 190,400 square feet of land located between E. McKinney and Prairie and
adjacent to Union Pacific rail lines for use as parking and hike and bike trails and related
purposes; authorizing the expenditure of funds therefor; and providing an effective date.
The following ordinance was considered:
NO. 2001-217
AN ORDINANCE APPROVING A LETTER REAL ESTATE AGREEMENT
BETWEEN THE CITY OF DENTON AND UNION PACIFIC RAILROAD
COMPANY RELATING TO THE PURCHASE OF APPROXIMATELY 190,400
SQUARE FEET OF LAND LOCATED BETWEEN E. MCKINNEY AND PRAIRIE
AND ADJACENT TO UNION PACIFIC RAIL LINES FOR USE AS PARKING AND
HIKE AND BIKE TRAILS AND RELATED PURPOSES; AUTHORIZING THE
EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE
DATE.
Fulton motioned, Beasley seconded to adopt the ordinance. On roll vote, Beasley "aye",
Burroughs "aye", Fulton "aye", McNeill "aye", Phillips "aye", Redmon "aye", and Mayor Brock
"aye". Motion carded unanimously.
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June 12, 2001
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193
3. The Council considered adoption of an ordinance approving a correction deed between
the City of Denton and Union Pacific Railroad Company relating to a line sale agreement dated
July 2, 1993 for Union Pacific's Denton Branch Rail Line between Milepost 721.72 at Denton,
Texas, and Milepost 729.5 at Coors, Texas; and providing an effective date.
The following ordinance was considered:
NO. 2001-218
AN ORDINANCE APPROVING A CORRECTION DEED BETWEEN THE CITY OF
DENTON AND UNION PACIFIC RAILROAD COMPANY RELATING TO A LINE
SALE AGREEMENT DATED JULY 2, 1993 FOR UNION PACIFIC'S DENTON
BRANCH RAIL LINE BETWEEN MILEPOST 721.72 AT DENTON, TEXAS, AND
MILEPOST 729.5 AT COORS, TEXAS; AND PROVIDING AN EFFECTIVE DATE
Beasley motioned, Burroughs seconded to adopt the ordinance. On roll vote, Beasley "aye",
Burroughs "aye", Fulton "aye", McNeill "aye", Phillips "aye", Redmon "nay", and Mayor Brock
"aye". Motion carried with a 6-1 vote.
4. There was no official action on Closed Meeting Item(s) under Sections 551.071-551.086
of the Texas Open Meetings Act.
With no further business, the meeting was adjourned at 11:10 p.m.
CITY OF DENTON, TEXAS
EULINE BROCK, MAYOR
CITY OF DENTON, TEXAS